Buying a new vehicle represents an important and a large financial commitment. A lot of money is involved and thus working towards gaining discounts will reflect in hundreds if not thousands of dollars saved.
New vehicles can be bought from dealerships; salespeople working there will try their best to persuade shoppers into becoming buyers, so it is up to you to control the result by outsmarting them.
Timing is everything
Hitting the sweet spot when buying new cars has a lot to do with the time someone is looking to acquire a new vehicle. A basic rule of thumb is to choose the end of a sale period for your purchase; that’s when the dealers tend to give in the most.
Whether it’s the end of the day or the end of the year, it’s the time for salespeople to generally push to make that final sale and consequently agree to lower price offers.
End of day, month or year
The vast majority of dealerships work on a commission based system. Salespeople receive a percentage or per car flat rate commission, so the more cars they sell, and the better they will rank in the eyes of their managers.
Starting from the highest level managing position and down to the person concluding the sale, everyone has targets and goals to be met and if possible, exceeded.
While meeting targets is a must in order to keep your job, exceeding expected outcomes result in bonuses for dealers. It is up to you, the buyer, to exploit the weakest moment when the dealer is either pushing to meet the goal or when he is just shy of another sell to catch that bonus.
Completion of set targets is assessed usually at the end of a month or at the end of the year. This is the cue a new car buyer should look after to ensure a better offer than usual. Arriving at the dealership towards the end of the month, you are most likely to catch the dealer in a sensible position from where you can profit.
Arm yourself with patience and see how eager the salesperson is to get your signature on the contract and withdraw money from your account.
It’s a good idea to check average sale prices before going to the dealership. This way you know if you are getting a better offer thanks to coming in at the right time. If it’s not the case, you should check another dealer and try your chances there.
The same technique can be applied by shopping for a new vehicle at the end of the financial year. That is when the big closures are done and yearly reports are generated. Most dealers will work hard towards pumping up the total sales figure on those last few days, also being open to bigger concessions than usual.
Christmas holidays trick
Another period of time where dealerships provide better car offers is the Christmas holiday. Since most people tend to save money for the holiday, car sale market is moving slow, causing dealerships to offer lower prices with the hope of closing deals.
If possible, do your Christmas shopping as early as possible and come around the dealership as the ultimate hope that deserves a great offer.
Buying before new models
A good trick in the book about getting better new car prices is to acquire a vehicle before a new model or a mid-life facelift is about to hit the market. Dealers rush to get rid of the old stock before a new model comes in, so here is your chance. Even if you are not going to receive a mind blowing offer, there are high chances of having the dealer throw in some extra features for free.
Usually, the best savings are done by buying a vehicle model that is just about to be replaced by a fully new unit. To save even bigger, you can search the market for vehicles which have been sitting in the dealership for more than a year since their fabrication.
At this time a new more efficient and better equipped model might have been released and could cause your car to look dated; however if cutting costs is your primary goal, this option deserves a shot.
As one could have already figured out, there are various periods when it’s better to buy a new car. It’s highly important to be patient and not rush to the dealership right after you’ve set your payment method and source, but rather wait for when the salesperson is ready to make the biggest concessions in terms of price.
Study the market and do not jump on the first offer, no matter how tempting it may sound; a better one might be waiting around the corner, at the next dealership.